Many investors are attracted in setting up their company in Nevada due to many tax advantages in that particular state. This is especially true for LLC, or limited liability company, wherein the owners are offered flexible and limited accountability.
However, setting up an LLC in Nevada has many prerequisites. The following are some of the minimum requirements for Nevada LLCs.
• Shareholders, directors and officers don’t have to live or conduct meetings in Nevada. Relocation is also not necessary. Most importantly, they don’t have to be U.S. citizens
• Directors need not be stockholders.
• Nevada LLCs may buy, hold, trade or move shares of their own stock.
• One person can hold all posts in Nevada LLCs.
• No cash limitations. In Nevada LLCs, investors can issue stock for cash, property, or services completely free from the discretion of the board of directors.
One great advantage of Nevada LLCs is the tax incentives given to them by the state. Here are the following taxes in which Nevada LLCs are exempted from.
- Admissions Tax
- Corporate Tax
- Franchise Tax on Income
- Inheritance of Gift Tax
- Personal Income Tax
- Unitary Tax
Other significant advantages of Nevada LLCs are the following:
- Liability and accountability ends with the company. As director or officer, an individual cannot be held liable for lawsuits against his company unless in circumstances of absolute fraud. He also has the capability to use nominee officers and directors on his behalf
- The state law also does not oblige companies to file a record of assets. Thus, the company’s assets are not associated to the investor in any way.
- In Nevada LLCs, the names of shareholders who own a company are not required to be filed with the state. Thus, the shareholders are anonymous and are not subjected for public records.
No Cash Restrictions
- In Nevada, you can issue stock for cash, property or services at the complete discretion of the board of directors, which, as previously stated, can be just you.
Those factors mentioned above, as well as the relatively flexible minimum requirements, make Nevada a great place for setting up an LLC. Furthermore, a prospect investor can visit the state government to find out more about the state provisions.